Preservation and Opportunity Neighborhoods in the Low Income Housing Tax Credit Program

This Working Paper looks at the combination of incentives state agencies are using in their LIHTC programs for affordable housing in neighborhoods with economic growth, quality schools, low crime, and access to services and/or transit.

Providing access to housing in "opportunity neighborhoods" is important. Equally important is preserving and improving affordable housing in the communities where low income families already reside. States can and should be investing in communities of high opportunity while simultaneously preserving existing affordable housing wherever it may be. Many states are seeking to create this balance in their Qualified Allocation Plans (QAPs). This Working Paper looks at what incentives state housing finance agencies are using in their QAPs to develop affordable housing in areas of opportunity.